Journal Entries

Journal Entry for Business started with Cash at Bank and Machinery

• Cash A/c...Dr.

  Machinery A/c...Dr

  To Capital A/c

• Bank A/c...Dr.

  Machinery A/c...Dr.

  To Capital A/c

• Cash A/c...Dr.

  To Capital A/c

  To Machinery A/c

• Machinery A/c...Dr.

  Capital A/c...Dr.

  To Cash A/c

Journal Entry for goods purchased from Arvind

• Purchases A/c...Dr

  To Cash A/c

• Purchases A/c...Dr

  To Bank A/c

• Arvind A/c...Dr

  To Purchases A/c

• Purchases A/c...Dr

  To Arvind A/c

Journal Entry for sales to Anil

• Purchases A/c...Dr

  To Cash A/c

• Anil A/c...Dr

  To Sales A/c

• Cash A/c................Dr

  To Sales A/c

• Cash A/c............Dr

  To Anil A/c

Journal Entry for Goods returned by Anil

• Purchase Returns A/c...Dr

  To Anil A/c

• Anil A/c...........................Dr

  To Sales Returns A/c

• Cash A/c................Dr

  To Anil A/c

• Sales Returns A/c............Dr

  To Anil A/c

Journal Entry for Goods returned to Arvind

• Purchase Returns A/c...Dr

  To Arvind A/c

• Arvind A/c...........................Dr

  To Sales Returns A/c

• Arvind A/c..........................Dr

  To Purchase Returns A/c

• Sales Returns A/c............Dr

  To Arvind A/c

Journal Entry for Goods withdrawn for personal use

• Capital A/c...Dr

  To Cash A/c

• Purchases A/c...........................Dr

  To Drawings A/c

• Drawings A/c..........................Dr

  To Purchases A/c

• Purchases A/c............Dr

  To Capital A/c

Journal Entry for cash received from Kiran Rs.3,960 in full settlement of Rs.4,000

• Cash A/c............Dr 4,000

  To Kiran A/c 3,960

  To Dis. Recd. A/c 40

• Cash A/c...........................Dr 3,960

  To Kiran A/c 4,000

  To Dis. Recd. A/c 40

• Cash A/c....................Dr 3,960

  Discount Recd. A/c........Dr. 40

  To Kiran A/c 4,000

• Cash A/c................Dr 3,960

  Discount Allowed A/c...Dr. 40

  To Kiran A/c 4,000

Journal Entry for goods purchased from Sohan Rs.20,000 less 5% Trade Discount

• Purchases A/c.................Dr 19,000

  Disc. Recd. A/c....Dr. 1,000

  To Sohan A/c 20,000

• Purchases A/c.................Dr 20,000

  To Sohan A/c 20,000

• Purchases A/c.................Dr 19,000

  To Sohan A/c 19,000

• Purchases A/c.................Dr 1,000

  To Sohan A/c 1,000

Journal Entry for goods sold to Vihan Rs. 30,000 less 6% Trade Discount

• Sales A/c.................Dr 28,200

  Dis. Recd. A/c....Dr. 1,800

  To Vihan A/c 30,000

• Vihan A/c.....................Dr. 30,000

  To Sales A/c 28,200

  To Dis Recd A/c 1,200

• Vihan A/c.................Dr 30,000

  To Sales A/c 30,000

• Vihan A/c.................Dr 28,200

  To Sales A/c 28,200

Journal Entry for Machinery purchased from Mr.M Rs. 50,000 part payment paid Rs.40,000 by cheque

• Machinery A/c....Dr. 50,000

  To Bank A/c 50,000

• Machinery A/c....Dr. 50,000

  To Bank A/c 40,000

  To Mr. M's A/c 10,000

• Machinery A/c....Dr. 50,000

  To Bank A/c 40,000

  To Dis Recd 10,000

• Machinery A/c....Dr. 40,000

  M's A/c.....................Dr. 10,000

  To Bank A/c 50,000